FTX Recovery Trust Reduces Disputed Claims Reserve by $2.2B to Release $1.9B for Creditors, Payouts Begin Sept. 30

FTX’s ongoing repayment process for creditors has reached a pivotal stage, with the FTX Recovery Trust announcing a new distribution schedule and procedural details for the next major payout. The trust, overseeing the liquidation of the defunct cryptocurrency exchange, has set August 15, 2025, as the record date for the upcoming $1.9 billion disbursement, which will commence on September 30, 2025 [1]. This marks a significant step in the years-long effort to compensate stakeholders after FTX’s 2022 collapse, which triggered a broader market crisis.

The distribution, sourced from the reduction of the disputed claims reserve—a fund held for unresolved creditor disputes—the trust has cut this reserve from $6.5 billion to $4.3 billion, unlocking $1.9 billion for eligible claimants [2]. The funds will target fifth- and sixth-category unsecured creditors, as well as newly approved claims since the last payout in May 2025. To qualify, creditors must complete KYC verification, submit tax forms, and select a payment channel (BitGo, Kraken, or Payoneer) by August 15 [1]. Claims transfers must also be finalized before the record date, with a 21-day objection period to address potential disputes [3].

The use of BitGo and Kraken as crypto-focused intermediaries, alongside Payoneer for traditional financial transfers, underscores the trust’s strategy to accommodate diverse creditor preferences. Payoneer’s inclusion, in particular, highlights an effort to streamline access for individuals lacking direct exposure to blockchain infrastructure [3]. The trust emphasized that funds will only become accessible once they reach the selected service provider’s account, reinforcing the importance of adhering to procedural timelines [1].

This round of disbursements follows two prior distributions totaling $6.2 billion, with the trust aiming to eventually allocate between $14.7 billion and $16.5 billion to creditors [2]. The latest allocation reflects a judicially approved effort to prioritize liquidity for resolved claims while preserving the remaining $4.3 billion disputed reserve for unresolved cases. However, analysts note that unresolved disputes will likely delay future payouts, as the reserve’s size remains substantial [2].

The court’s approval of the reserve reduction signals a broader strategy to accelerate compensation for stakeholders, a move that could mitigate further litigation. Yet, the prolonged repayment timeline—nearly three years since FTX’s collapse—highlights systemic challenges in crypto governance and trust-building [1]. For creditors, the September 30 distribution represents the largest single tranche to date, offering relief to affected parties, including retail investors and institutional claimants.

The trust’s structured approach, including publicized deadlines and procedural clarity, may serve as a template for future crypto insolvencies. However, the sector’s regulatory fragmentation and lack of standardized recovery mechanisms remain unresolved. The September 30 payout will test the trust’s ability to manage expectations and maintain stakeholder confidence amid ongoing uncertainties [3].

As the distribution date approaches, creditors are urged to finalize participation steps promptly. The success of this payout hinges on procedural compliance and the trust’s capacity to address claims efficiently. For the broader market, this development underscores the evolving nature of post-failure recovery in crypto, where court-oversight and decentralized stakeholder participation play defining roles.

Source:

[1] FOX16.com, [https://www.fox16.com/business/press-releases/cision/20250723NY36647/ftx-sets-next-distribution-date-following-disputed-claims-reserve-reduction]

[2] AInvest, [https://www.ainvest.com/news/ftx-recovery-trust-sets-august-15-record-date-creditor-payouts-2507/]

[3] Coinpedia, [https://coinpedia.org/]